Question: 3. Shareholders equity reported on the balance sheet is most likely to differ from the market value of shareholders equity because: A. historical cost basis

3. Shareholders’ equity reported on the balance sheet is most likely to differ from the market value of shareholders’ equity because:

A. historical cost basis is used for all assets and liabilities.

B. some factors that affect the generation of future cash flows are excluded.

C. shareholders’ equity reported on the balance sheet is updated continuously.

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